Universo Foneclub Corporation et al.

On May 30, 2006, the SEC obtained temporary restraining orders and asset freezes in connection with an alleged pyramid scheme perpetrated by Sanderley R. De Vasconcelos, Victor Sales and Universo FoneClub Corp. According to the complaint, the defendants falsely promised members of the Brazilian-American community that they would earn substantial sums of money by paying approximately $2,000 to $5,000 to become members of the Foneclub, which purportedly sold prepaid telephone calling cards through a multi-level marketing structure. The SEC alleged that the defendants, who emphasized to potential investors that neither they nor the company would earn profits from the sale of phone cards, were in reality luring victims into a pyramid scheme in which its members would only make money through the recruitment of new members.

For more information about the SEC's action, you can read Litigation Release Nos. 19715 (June 1, 2006) and 20127 (May 23, 2007).

The money frozen by the SEC as well as others sums paid by the defendants are part of a Disgorgement Fund. In the near future, the SEC plans to propose a plan, subject to the Court's approval, to distribute the Disgorgement Fund to investors who suffered losses on their purchases of Foneclub memberships.

To facilitate the distribution, the Court appointed John J. Aquino, Esq. as Distribution Agent. If you have questions, you can reach Mr. Aquino at:

John J. Aquino, Esq.
Anderson Aquino LLP
240 Lewis Wharf
Boston, MA 02110
Email: jja@andersonaquino.com

http://www.sec.gov/divisions/enforce/claims/universofoneclub.htm